2-12.1 Identify Surplus Surplus is any supply that will be: Discontinued. No longer used. No longer operating. Excess inventory. Surplus results in or creates the following: Poor space utilization. Tracking expenses. Maintenance costs. Insurance costs. Inventory costs (in excess of regular extra inventory necessary to have on hand to meet demand). When a project enters into the final phase of its life cycle, these economic and operational considerations are used to identify when the equipment no longer effectively supports the original project or need. Because the identification process requires an estimate, the client must rely on professional expertise and experience, as well as the professional expertise, experiences, and advice of the entire purchase⁄SCM team.